Casino Customer Service

An internal improvement program at casinos usually requires employees to go through training, and casinos should calculate the return on investment in that training to be sure they have made a good investment in their employees.

In gaming, an improvement program may be one of many strategies to increase the level of guest and employee advocates while also boosting market share.  When a casino pursues an improvement program, invariably its employees must learn how to do their jobs better.  They may also be asked to approach their jobs from a different point of view.  This requires training and learning.

In an article for Learnativity.com, Marcia L. Conner says there is confusion over how to measure return on investment for learning but that it can be done.  Conner says to identify the total financial benefit of a learning program and then subtract from that the total cost to develop, produce and deliver the program.  Divide the outcome of that calculation by the total cost of the program, multiply by 100 you have the ROI, according to Conner.

To help casinos understand and deal with this issue, we have published a white paper on casino return on investment.  Those interested in obtaining a copy of the white paper should e-mail Lydia Baird, Robinson & Associates’ director of business development, at lbaird@casinocustomerservice.com or call her at 206-774-8856.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

It’s the one question casino management is most likely to ask when considering an internal improvement program to boost a property’s performance – what will be the return on investment?  My company, Robinson & Associates, Inc., has published a white paper on ROI to help casino executives better understand the subject and how ROI is determined.
 
Many casinos launch internal improvement programs as one strategy for increasing market share, but they have always struggled with determining a program’s ROI.  It doesn’t matter what the program is – customer service training, implementing an employee recognition program – the question is always the same.  The ROI question is important.  Casinos must be able to measure the effectiveness of their strategies.  Our white paper provides answers.
 
Referencing a wide variety of sources, the white paper demonstrates just how much is at stake by exploring  the phenomenal revenue growth in casino gaming.  It takes a close look at how to calculate ROI in internal improvement programs, including ROI in employee training.  

Our Advocate Index™ and Advocate Development System™ are explained, and the white paper shows that ROI can be calculated by launching innovative internal improvements that lead to the creation of guest and employee advocates.

Casino innovation includes creating a new measurement system that manages employees, guests and internal systems as assets.  Such a system is not a cost as it relates to ROI but, rather, an investment in people and the casino’s future that can yield enormous benefits.  That fits nicely with ROI because ROI calculations involve a cost-benefit analysis.

Those interested in obtaining a copy of the white paper should e-mail Lydia Baird, our director of business development, at lbaird@casinocustomerservice.com  or call her at 206-774-8856.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

Research by McBassi and Company has found that a common mistake companies make when trying to determine return on investment from a specific program is that the program is not directly tied to business results.  The same applies to casinos trying to measure the ROI of an internal improvement program.  It is vital to clearly identify the expected business results before the process even begins.  To affect future growth, it is important to have data, information and insights that are actionable.  Business results give the casino a measurable benefit that can be applied to the traditional ROI equation, thus generating an ROI percentage.
 
To help casinos understand and deal with this issue, we have published a white paper on casino return on investment.  Those interested in obtaining a copy of the white paper should e-mail Lydia Baird, Robinson & Associates’ director of business development, at lbaird@casinocustomerservice.com or call her at 206-774-8856.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

Casinos that implement internal improvement programs to boost performance and then actually realize an increase in revenue can determine how much the program contributed to the gain and then calculate the program’s return on investment.

As casinos compete for market share, they pursue various strategies to accomplish their purpose and vision.  One strategy is to roll out an internal improvement program that enhances overall performance.  From there, the casino should want to know what it got in return for its investment in the program.  The ROI can be determined and is well worth the effort.

Here are some tips on ROI and improvement programs.

Break It Down.  Assuming the casino has an increase in revenue from one year to the next after implementing an improvement program, the property should break that revenue gain down to get at the program’s actual contribution to the numbers.

Take A Look At the Hold.  Calculate the percent increase in hold from gaming machines and table games.  Once you have that number, subtract it from the overall percent increase in revenue.

Talley Up Marketing and Promotions.  Next, determine the percent increase in spending for marketing and promotions and subtract that from the new, lower number calculated in the first step.

Normalized Growth.  After subtracting the increase in marketing and promotions expenditures, you have the casino’s normalized growth.  

Now Determine the Program’s Contribution.  Subtract the normalized growth from the initial percent increase in revenue and the end result is the improvement program’s contribution to revenue growth.

Apply the ROI Formula.  Knowing how much an improvement program contributed to revenue growth is important information.  The final step is to calculate the program’s ROI.  To do that, calculate the program’s contribution in dollars.  That’s the benefit.  Subtract the cost of the improvement program from the benefit, divide that number by the total cost of the program and multiply that number by 100.  There’s your ROI.

To help casinos understand and deal with return on investment, we have published an ROI  white paper.  Those interested in obtaining a copy of the white paper should e-mail Lydia Baird, Robinson & Associates’ director of business development, at lbaird@casinocustomerservice.com or call her at 206-774-8856.

Martin R. Baird
Robinson & Associates, Inc.
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
mbaird@casinocustomerservice.com
480-991-6420

 It is important to note that internal improvement at casinos involves a lot more than just employee training.  Properly done, it requires creation of a structured program.  What casinos need for internal improvement is a turnkey system that incorporates such best business practices as leadership, program management, goals and metrics, action planning and incentives.  Measuring return on investment for employee training – one component of an improvement program – is difficult enough and even more challenging to apply to such complicated systems.  But it can be done and is well worth the effort.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

When casino employees give their guests a gaming experience that is an absolute delight, they have gone a long way toward turning those customers into advocates for the property.  One goal of casino employees should be to delight all of their guests.  They should want guests to feel as if they are the only person in the room, that employees’ full attention is on them at all times and that casino staff is delighted to help them any way possible.  Do that and guests will leave feeling special and important.  That can turn them into advocates.  Providing a delightful experience is not a Herculean task..  Guests will be delighted if employees simply do the little things to the best of their ability.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420